EOT - Could U.S. Municipals Suffer As Coronavirus Spreads?
By Daryl Clements
As the novel coronavirus pandemic wreaked havoc on the markets over the past month, municipal bonds initially benefited from the flight to safety that drove Treasury yields lower. But most recently, markets told a different story, as muni yields rose-and prices fell-more than Treasury yields. Investors are now asking: aren't many municipal bond issuers vulnerable in this crisis?
Muni issuers' exposure to the battle against COVID-19 varies. Some sectors, such as hospitals, are on the front line. Others, such as state governments, may experience not only first-order effects as budgets stretch to